Dogecoin (CRYPTO: DOGE) Investors should expect to plunge into another major downturn soon.
What happened: According to a recent technical analysis by AMBCrypto, Dogecoin price was based on a support in the $ 0.28 area and its simple 12-hour 200 candlestick moving average.
Since the analysis was first published, the coin has already lost support, falling to $ 0.2734 at press time.
According to the report, Dogecoin had an opportunity to start an uptrend when it broke above $ 0.28 on August 13, but then it was unable to keep its price above $ 0.35, creating bearish sentiment.
Further downward moves were caused by the price of the coin, which formed a symmetrical triangle and broke the USD 0.28 support that has been in play since hitting new highs in early April.
Why it matters: The bulls could be spurred on by the 12 hour 200 candlestick simple moving average which is about to cross the 50 candlestick simple moving average, which would have been an uptrend sign indicating a possible market reversal.
But bears are also reassured by the Awesome Oscillator showing weakness and threatening to drop below the half-line for the first time in over three weeks, while the Directional Motion Index showed further bearish confirmation as the -DI crossed over the + DI, which switch indicates a trend.
What else: The analyst concludes that most of the indicators are suggesting a longer decline is imminent, especially if the coin were to lose the USD 0.28 support as it did before.
The report follows a recent analysis that suggests Dogecoin is facing a major downturn that will cause it to hit the $ 0.22 price level.
Earlier this week, a Motley Fool report highlighted how little use the Dogecoin blockchain sees, despite being one of the seventh largest cryptocurrencies by market capitalization.
The report’s author also claims that the value of the coin is largely determined by the speculative actions of a few less wealthy individuals.
Price action: According to CoinMarketCap data, Dogecoin is currently trading at $ 0.2734 after falling about 6.66% in the past 24 hours.
The story goes on
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